Thomas Properties Group Completes New Long-Term Financing for Austin Office Portfolio

LOS ANGELES--(Business Wire)--
Thomas Properties Group (NASDAQ:TPGI) has reached an agreement with its other
partners in the Austin Portfolio partnership, including Lehman Brothers and
California State Teachers` Retirement System, that restructures and
recapitalizes the financing on the partnership`s 3.5 million-square-foot,
10-property, commercial office portfolio in Austin, Texas.

Under this arrangement, Thomas Properties Group, and its other partners in the
Austin Portfolio, agreed to restructure a $292.5 million credit facility by
replacing the unfunded $100 million commitment with $60 million of new senior
secured priority financing contributed by the partners. Proceeds from this new
financing are being used to deleverage the portfolio by acquiring at a discount
and immediately retiring third-party term loan debt with an $80 million face
value, and to provide an ongoing source of capital for leasing and capital
improvements.

"The Austin portfolio is comprised of top-tier office properties with stabilized
rents and occupancies. Our ability to deleverage this portfolio further assures
our success in maintaining the quality and performance of these properties,"
said James A. Thomas, CEO, Thomas Properties Group. "This restructuring resolves
pending financing issues and provides capital required for operations. We have
great confidence in Austin and its future, and we remain committed to providing
the best service to our tenants, enhancing the performance of our properties and
being an involved member of the Austin community."

The Austin debt restructure was approved by the Lehman Brothers Bankruptcy Court
judge on March 25, 2009; the agreements were executed by the partners and the
initial funding under the new facility was made on March 26. The approval of
this financing also resolved the motion filed in the Lehman bankruptcy
proceedings by Thomas Properties Group in November 2008.

"All our partners have worked diligently with us on the restructuring and we are
gratified that Lehman Brothers will remain an active and engaged participant in
the partnership," noted John R. Sischo, Executive Vice President, Thomas
Properties Group.

"We are delighted to have reached an agreement that balances the needs of all
parties and positions the Austin portfolio for continued success," said Jeff
Fitts and Jerry Pietroforte, managing directors with Alvarez & Marsal and
co-heads of Lehman Brothers` real estate asset team. The professional services
firm of Alvarez & Marsal has been overseeing the Lehman Brothers Estate and
working to preserve and maximize value for creditors.

Lehman Brothers continues to retain a 50 percent ownership interest in the
Austin portfolio while Thomas Properties Group, indirectly through its joint
venture with the California State Teachers` Retirement System, holds a 6.25%
interest.

Thomas Properties Group owns an interest in and manages approximately 2.5
million square feet of premier Class A office space in the Austin Central
Business District, including the two most recently constructed downtown office
towers, Frost Bank Tower and 300 West 6th Street. The company also owns
interests in and manages approximately one million square feet of Class A space
in the growing Northwest submarket.

About Thomas Properties Group

Thomas Properties Group, Inc. is a full-service real estate company that owns,
acquires, develops and manages office, retail and multi-family properties
throughout the United States. The company has four primary areas of focus:
property operations, property acquisitions, property development and
redevelopment, and investment management. For more information on Thomas
Properties Group, Inc., visit the company's website at www.tpgre.com.

Forward Looking Statements

Statements made in this press release that are not historical may contain
forward-looking statements. Although TPGI believes the expectations reflected in
any forward-looking statements are based on reasonable assumptions, these
statements are subject to numerous risks and uncertainties. Factors that could
cause actual results to differ materially from TPGI's expectations include
actual and perceived trends in various national and economic conditions that
affect global and regional markets for commercial real estate services,
including interest rates, the availability of credit to finance commercial real
estate transactions, and the impact of tax laws affecting real estate. For a
discussion of some of the factors that may cause our results to differ from
management's expectations, see the information under the captions "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Factors That May Influence Future Results of Operations" in our
10-K for the year ended December 31, 2008, which has been filed with the SEC.
TPGI disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

For Thomas Properties Group
John Sischo
310-720-1342 (cell)
213-613-1900 (office)
jsischo@tpgre.com
or
Barbara Casey
310-473-8090
bcasey@cswpr.com
or
Kimberly Macleod
212-526-2380
kmacleod@lehman.com

Copyright Business Wire 2009